Fundamentals of Project Management

This report covers all the essential aspects of project management, including parameters and risks, planning and costs, managing progress and spending, and more. Learn about the importance of project management in organizations and gain insights from a case study. Reflect on the experience and challenges faced during the formulation of this report.

Fundamentals of Project
Management

EXECUTIVE SUMMARY: This report is comprises a deep study on project management
which covers all the essential aspect of project management and help in identified importance of
functions of project management in organization. This report is prepared on the basis of case
study of Automation Futures. On the other part this report included a reflection which describe
summary of experience and problem faces during formulation of this report.

Contents
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
1. Parameters and Risk of the company...........................................................................................5
(a) Iron Triangle Parameters.......................................................................................................5
2. Planning and Costs....................................................................................................................11
(a) Network Diagram.................................................................................................................11
(b) Gantt Chart...........................................................................................................................12
(c) Net profit of the contract......................................................................................................14
3. Managing progress and spending:.............................................................................................15
(a.)..............................................................................................................................................15
(b.)..............................................................................................................................................17
4. Earned Value Analysis and Acceleration:.................................................................................21
(a.)..............................................................................................................................................21
(b.)..............................................................................................................................................24
(c.)..............................................................................................................................................24
PART B.........................................................................................................................................24
Reflective Essay.........................................................................................................................24
CONCLUSION..............................................................................................................................25
REFRENCES...................................................................................................................................1
From books and journals.................................................................................................................1

INTRODUCTION
Project management is art of managing all the activites, task in order to achieve goal of
business organization. It is a process of implementing recording, analysing, and controlling
activities of particular definite task. In order to understand the concept of project
management Automation Futures has been taken, this company started new project. This
report covers all the function and activites taken during the management of project , how
managers deal with problem and analysis risk uses of project management technique for
decision making approach and reflection of overall experience has been define clearly.
TASK 1
1. Parameters and Risk of the company
(a) Iron Triangle Parameters
Automation Futures use iron triangle and project management triangle as a model for their
company. Success of an organization totally depends on well they use their resource in
managing projects activites. For statement new project of technology time, cost of
establishing project, quality of the project and time duration are some essential constraint
used in project triangle. It is necessary to use methods and technique to manage all theses
factor in an effectiveness way to achieve goal of the project. Quality of this project can be
maintain by formulating budget for this project.. For completing project of the TTF PLC
following are the constrains of this project:
Projects when initiated on fixed cost and flexible on deliverable basis. In this situation AF PLC
needs to perform work on consumer priority basis. Performed in small parts to be delivered on
time and monitoring needs to be performed on time.
Fixed time: when consumers ask to deliver project on specific time then work needs to
be performed in absolute business value order. Fixed time duration is accessed to push the work
with final date (Ding, 2016).
Fixed Scope: When work needs to be performed as mentioned and time and cost for the
delivery is set flexible. In this quality of the work is maintained.

Fixed cost and scope: When fixed cost and fixed set of deliverable are expected then in
that case flexibility is provided to date of delivery. Risk is increased to minimize the unexpected
delays.
Fixed cost and time: When fixed cost and time is expected for the project then in this
situation set features are set flexible (Quresh and Kang,2015). Price and time become constraints
for such projects.
Fixed time and Scope: When fixed set of deliverable needs to be provided in fixed time
and cost is set free. Then amount spent is not a constrained for the project. A schedule is
prepared and care is taken in the process to unexpected cost can be minimized and controlled.
Illustration 1: Iron Triangle Parameters, 2019
(b) Risk Register
Risk Management Register for XYZ Project
Risk Identification Assessment Response
Monitoring and
Control
Ref Even Cause Effect Pro Im P St Trigger Action Resp Revi Status

eren
ce t bab
ility
pa
ct
x
L
ra
te
gy
onsib
le
perso
n/s
ew
Freq
uenc
y
date
and
general
notes
1 Lack
of
fundi
ng
Budget
Constra
ints-
allocati
on in
doubt
or
subject
to
change
Projec
t
delaye
d
4 5 20 Mi
tig
ate
Project's
sponsors
fail to
ensure
secure
funding
level
when
the plan
is
presente
d
Conduct
another
funding
round,
seeking
support from
key
stakeholder
groups,
including the
executive
sponsor
Proje
ct
Mana
ger,
Exec
utive
Spon
sor
Mon
thly
23.11.1
6
Registe
r
updated
.
Alternat
ive
funding
sources
identifi
ed
2 Unde
r
budge
ting
Unfore
seen
situatio
ns
which
leads to
high
amount
of loss.
Low
amoun
t of
profit
or
may
cause
loss.
5 6 30 Go
od
est
im
ati
on
Project
manager
estimati
on was
incompe
tent
Effective
analysis and
scope of
variations.
Proje
ct
mana
ger
and
empl
oyees
.
Mon
thly
27/11/1
6
3 Time
estim
ation
Non
compil
ation of
task as
planned
Delay
in the
proces
s of
compl
6 4 24 An
aly
sis
Wrong
estimati
on is
made by
manager
Proper check
needs to be
made on each
activity to be
performed on
Proje
ct
Mana
ger
After
com
pleti
on of
an
29/11/1
6

and
expecte
d.
etion
of the
project
.
for
activity
completi
on.
time. activ
ity
4 Uncer
tain
event
s
Situatio
ns
which
is not
predict
ed
earlier
takes
place.
Distra
ction
of the
project
5 5 25 Mi
tig
ate
the
eff
ect
Project
manager
fails to
make
estimati
ons.
Take all the
corrective
actions to
minimise
negative
effect.
Proje
ct
mana
ger
and
team
mem
bers
Whe
n
requi
red
02/12/1
6
5 Uncle
ar
specif
icatio
ns
Becaus
e of
unclear
or
incorre
ct
project
intentio
n
Qualit
y of
work
is
compr
omise
d
4 5 20 De
vel
op
in
g
we
ll
sp
eci
fie
d
pr
oje
ct
Project
manager
fails to
develop
clear
specific
ations
for the
project
activitie
s.
Take review
at each stage
to reduce
such
circumstance
s.
Proje
ct
mana
geme
nt
team
With
each
activ
ity
02/12/1
6
6 Negli
gence
Lack of
time
for
Failur
e of
the
5 4 20 Re
qu
ire
Team
member
s do not
Each activity
needs to be
performed as
Team
mem
bers
For
each
activ
05/12/1
6

project
accomp
lishmen
t
project d
co
nsi
de
rat
io
n
ne
ed
s
to
be
pr
ov
ide
d
provide
a clear
concentr
ation on
their
activitie
s.
planned and
set targets.
of the
proje
ct
ity
7 Tech
nical
risk
Lack of
require
d
technol
ogy
Non
accom
plishm
ent or
enhan
cemen
t in
time
period
6 5 30 Ch
ec
ki
ng
tec
hn
ica
l
via
bil
ity
Risk
manager
of the
project
made
wrong
estimati
on for
technica
l risk
Completing
the project in
alternative
and possible
manner.
Risk
mana
ger
Mon
thly
07/12/1
6
8 Cost
mana
geme
Inaccur
ate cost
forecast
High
cost
and
4 4 16 Ac
cu
rac
Manger
of the
project
Ensure funds
are available
and minimise
Proje
ct
Mana
Quar
terly
15/12/1
6

nt s requir
ement
of
more
funds.
y fails to
develop
correct
analysis
over
budgeting
ger
9 Chan
ge
mana
geme
nt
Inaccur
ate
estimati
on for
the
project
High
amoun
t of
variati
ons
6 5 30 M
an
agi
ng
ch
an
ge
Manage
ment
team
fails to
work as
planned
because
of
wrong
estimati
ons.
Ensuring
estimations
on the basis
of plans.
Mana
geme
nt
team
Mon
thly
25/12/1
6
10 Com
muni
cation
Non
establis
hment
of
commu
nicatio
n
channel
Variati
ons in
actual
and
requir
ed
perfor
mance
5 5 25 Ef
fec
tiv
e
co
m
m
un
ica
tio
n
ch
an
nel
Manage
ment
fails to
establish
a clear
commun
ication
at each
stage of
project.
Take all
possible
actions to
make
effective
communicati
on network.
Mana
geme
nt
and
team
mem
bers
At
each
stage
of
the
proje
ct
25/12/1
6

2. Planning and Costs
(a) Network Diagram
A network diagram is a graphical representation of all the activities that AF PLC will
perform in the process of accomplishing the project provided by TTF PLC. Through this
representation responsibilities and work flow of the project is allocated among different
activities. This chart is prepared with series of boxes in which activities are defined and through
arrows series in which these activities will be performed is mentioned Crisp and Hosken 2016.).
Through this network diagram sequence of stages determining the minimum time taken for the
accomplishment of the project is determined.

(b) Gantt Chart
Gantt Chart of the project performed for TTF PLC will specify the time duration taken by
each activity to accomplish. Through this it will to identify that start period as targeted will help
in accomplishing the project on the deadline or not (Davies, and Brady, 2016). s this technical
project will be initiated on 8th July 2019 by AF PLC and it will be accomplished on 6th July 2020.
This project is provided with a completion date of 25th September 2020 and which is later then its
actual completion date. This helps to determine that business will accomplished the project
before its time and will earn extra profits for early completion as mentioned in the project clause.

(c) Net profit of the contract
In the process of calculating the amount of net profits cost of the project is reduced for
the allocated budget. As the project is accomplished before the time allocated for completion and
this generate some amount of bonus for AF PLC. As mentioned in the project contract that an
amount of £50k per day will be paid as bonus when project is completed before the completion
date. As AF PLC become successful in the process of accomplishing the project before the time
allocated to the project and this brings an amount of profits in business more then expected. In
the process of calculating the amount of net profits generated for the project this bonus will be
added as revenue (Ghaffari and Emsley, 2015). For the calculation for the net revenue it is
identified that an amount of £13.85 million is earned by completing the project 81 days before
the date of completion of the project as assigned in the contract. Earlier completion brings profits
in business and higher amount of profits are generated form the project.

Calculation of Net profits
Particulars Amount in millions(£)
Budgeted price of the project 58.5
Profits through early completion of the project (81 days * 50k) 4.05
Total revenue 62.55
Less: Cost of the project 48.7
Net profit 13.85
3. Managing progress and spending:
(a.)
Gantt charts are beneficial since they are easy to produce, utilize and monitor. A Gantt
Chart, in its quickest manner, is a time-frame that shows how well the project would move
forwards throughout the pathway of project-management. The timeline is shown to be very
helpful in scheduling and coordinating tasks (K. Vora, 2013). This allows project planners and
project leaders to decide how lengthy a project may entail, define the necessary resources,
consider the inter-task interactions, and schedule the order where each task would be
accomplished if the entire project is to finish on time. Gantt chart changes continuously as
project goes forward, showing an up-to-date plan deadline to meet all (teams, consumers and
interested parties) aware of the changes. Gantt charts also substitute meetings and boost other
progress reports. These make it so easier for managers to consider the progression of the tasks
and to discuss the issues we can face (Pasian, Sankaran and Boydell, 2012).
Here from Table and Gantt Chart it has been analysed that Task PI, A, B, C and E has
been completed actually after completion of 17 weeks but Task D, F, G and H are reported actual
progress to date in percentage of 80 %, 35 %, 35 % and 50 % respectively. While as per planned
figures project should be completed within 17 weeks. This delay in project lead to increased
aggregate expenditure. Following is table containing variations between actual and planned
expenditures incurred with respect to each task, as follows:

Comparison Planned vs Actual
Task Description
Total Actual
Expenditure
incurred to date
(£ m)
Planned Total
Expenditure up to
date (£ m)
Variations
(£ m)
PI Project's Initiation 0.2 0.2 0
A
Commissioning Designing of
Factory 2.91 2.8 0.11
B
Commissioning outlining
Designing of Automation
Equipment 1.72 1.6 0.12
C
Commissioning outlining
Design-Inverter Product 1.53 1.5 0.03
D Detailed designing of Factory 4.08 3.8 0.28
E
Detailed design of Automation
Equipment and Inverter
Product 5.97 5.4 0.57
F
Commission and develop
Software for Automation
equipment and Inverter Product 1.32 3.4 -2.08
G
Manufacture Automation
equipment 2.76 6.5 -3.74
From the analysis of above comparative analysis in table form it has been analysed that,
in task of project initiation there is no variation it means project has been started with planned
cost of 0.2 million. In Task F and Task G, there are negative variation which reflects that
planned expenditures are below the actual total expenditures that are 2.08 and 3.74 respectively.
While in Task A, B, C, D and E variations are positive (0.11, 0.12, 0.03, 0.28 and 0.57
respectively ) which is not a favourable sign. As these positive value of Variations shows that

planned figures are lower than actual figures. This overspending in these tasks shows that there is
revision required in current project. Tasks are not accomplished within the targeted figures which
points out towards inefficiency of current project. Project managers are required to emphasis on
those tasks in which actual costs and duration exceeded the planned duration and costs (Poston
and Richardson, 2019).
(b.)
After revision in forecasts through the different tasks as per given option, total budget of
project will reached to 49.885 million pounds. This increase will obviously affect the overall
project profit due to this profit will declined by 1.185 million pounds. Here is the revised table
and Gantt chart of project tasks, as follows:
Task Description
Duration
(weeks)
Fixed
costs £M
X Project Initiation 1 0.2
A Commission Design of Factory 3 2.8
B Commission outline Design of Automation Equipment 2 1.6
C Commission outline Design-Inverter Product 1 1.5
D Detailed design of Factory 8 3.8
E
Detailed design of Automation Equipment and Inverter
Product 8 5.4
F
Commission and develop Software for Automation
equipment and Inverter Product 13 3.6
G Manufacture Automation equipment 7 7.55
H Manufacture Modular Factory Units 9 4
I Transport and Construct Modular Factory on site in Germany 6 3.425
J Test Automation equipment. 6 2.2
K Transport Automation equipment to New Factory 4 2.5
L Install Automation equipment in New Factory 6 3.1
M Install Software for Automation equipment 4 2.2
N Install software for Inverter Product Line 4 2.675
O Test Inverter Production line 6 2.1
P
Handover and Train TTF engineers in Automation process
and Product production
4 1.235

PC Project Close out 0 0
Total 49.885

4. Earned Value Analysis and Acceleration:
(a.)
Earned Value and its use in Cost Control.
TASK BCWS ACWP %Progress BCWP
Planned Value Actual Cost Earned Value
PI $2,00,000.00 $2,00,000.00 100% $2,00,000.00
A $28,00,000.00 $29,10,000.00 100% $28,00,000.00
B $16,00,000.00 $17,20,000.00 100% $16,00,000.00
C $15,00,000.00 $15,30,000.00 100% $15,00,000.00
D $38,00,000.00 $40,80,000.00 80% $30,40,000.00
E $54,00,000.00 $59,70,000.00 100% $54,00,000.00
F $34,00,000.00 $13,20,000.00 35% $11,90,000.00
G $65,00,000.00 $27,60,000.00 35% $22,75,000.00
H $40,00,000.00 $27,50,000.00 50% $20,00,000.00
BAC $2,92,00,000.00 $2,32,40,000.00 $2,00,05,000.00
ACWP : Actual Cost of Work Performed
BCWP : Budgeted cost of Work Performed
BAC : Budget At Completion
BAC $2,92,00,000.00
PV $5,00,000.00
AC $2,32,40,000.00
EV $2,00,05,000.00

Cost Variance (CV = EV - AC) -$32,35,000.00
Cost Performance Index (CPI = EV/AC) 0.86
Schedule Variance (SV = EV - PV) $1,95,05,000.00
Schedule Performance Index (SPI = EV/PV) 40.01
Cumulative Planned
Value (PV)
200
000
300
000
0
460
000
0
610
000
0
990000
0
153000
00
187000
00
252000
00
292000
00
Actual Cost and Earned Value
Cumulative Actual Cost
(AC)
200
000
311
000
0
483
000
0
636
000
0
104400
00
164100
00
177300
00
204900
00
232400
00
Cumulative Earned
Value (EV)
200
000
300
000
0
460
000
0
610
000
0
914000
0
145400
00
157300
00
180050
00
200050
00
Project Performance Metrics
Cost Variance (CV =
EV - AC) 0
-
110
000
-
230
000
-
260
000
-
130000
0
-
187000
0
-
200000
0
-
248500
0
-
323500
0
Schedule Variance (SV
= EV - PV) 0 0 0 0 -760000 -760000
-
297000
0
-
719500
0
-
919500
0
Cost Performance Index
(CPI = EV/AC) 1.00 0.96 0.95 0.96 0.88 0.89 0.89 0.88 0.86
Schedule Performance
Index (SPI = EV/PV) 1.00 1.00 1.00 1.00 0.92 0.95 0.84 0.71 0.69

From above computations it has been analysed that CPI or cost performance index after PI Task
is below the 1 which is adverse sign for project's cost feasibility. While schedule performance
index or SPI is below 1 in case of tasks D, E, F, G and H, which shows that after task c project
schedule is not as per planned figures. Moreover here estimated cost of completion of project is
continuously rising, that is an indicator of need of revision in project. Overall analysis shows that
this project is not as per scheduled or planned figures (Ercan, and Khan, 2017).

(b.)
Based on originally planned figures completion date is 06/07/2020 which is earlier than
the projected deadline of 25/09/2020. Company with existing plan can complete the entire
project within scheduled time-frame but cost has been increased due to earlier completion of
project which has created loss in project. However there are several options before company
through them company can minimise overall costs and increase projected figures of profit but
completion date will also simultaneously shift to 14/08/2019. This change in completion date
also resulted in loss of bonus which could be earned during the gape on early completion
(Dawang, Othman, and Chen, 2018).
(c.)
Through Evaluation of different options and initial plan its has been recommended here
that original project plan without considering options would be viable for company. Because
after adoption of options, completion date would be 14 Aug, 2020 while completion date of
original plan is 6 July, 2020. Here notable this is that there is penalty clause section exists in
project's contract. Under it for per or part day delay in project which is beyond completion date
i.e. 25/09/2020, company AF PLC required to pay-out TTF liquidated damages of pound 100k
per day. While if project is completed early to the completion date then company will get bonus
of £50k per day. Thus if company adopts original plan without selecting options then project will
complete more earlier, so company can recover the loss incurred in existing plan by claiming
bonus rewards on early completion.
PART B
Reflective Essay
Project management process is available with different types of risk which are attached to
them in the process of accomplishing required activities of the project. As a project manager of
AF PLC while accomplishing the technological project with I have encountered with number of
challenges which provides huge amount of difficulties in the process of accomplishment of the
project. Some of the challenges that I faced was lack of accountability as project was initiated
with a huge team and at the each stage of management their was no one specifically present to be
accountable for the project activities (Too and Weaver, 2014). Together with this, change in
scope introduce huge amount of complication in the project as no member of the team was

available with clear specification for their job performance. Great expectations are the reasons
for each negative situation that I felt while managing the project. As AF PLC is one of the
leading organisation in technological and development projects and this creates high pressure on
the team to perform more then best in any situation (Takuma and Iwakami, 2019).
As a project manager I need to take care of all the challenges that come across while
accomplishing the project and develop required characteristics as a good project manager and
some of the are as follows-
Effective Communication: Good communication is required for the initiation of the
project so that each task can be assigned to the appropriate candidate. As communication is
required for allocation of work and also in the process of transferring required information at
each level of management. Effective communication skills while working with AF PLC will help
to identify issue among team member. This will also help to motivate all the individuals to
perform well and achieve set targets.
Good decision maker: As a project manager all the decisions relation to the project of
TTF PLC will be taken by me. A decision will be termed good when taken on time and provides
best solution of the issue concern. As a manager I need to develop my capabilities to take good
decisions through effective analysis to generate positive results.
Technical Expertise: As AF PLC is an organisation which deals in technological
projects and project manager of the organisation must be available with all the technical
expertise. All the decisions of the manager will be viable when he is available with the required
knowledge and in the process of completing the project technical decisions needs to be taken
with technical expertise (Heagney, 2016).
Leadership skills: A project manager is a leader of the project who takes all the decision
for the project and assign all the activities in the process of accomplishing targeted objectives. I
need to develop such leadership skills so that all the team members of the project follow my
instructions and perform the work as assigned to them. This will help in accomplishing the
project in targeted manner and goodwill of the organisation is created in the competitive market.
CONCLUSION
From above study it has been articulated that Project management is crucial as it assures
the correct implementation plan for tactical objectives is in place. It enables managers to keep
effective controlling over different tasks as it offers comprehensive details about project like task

description, scheduled duration, no. of employees engaged and completion date of each task.
Without adequate project management, it really is difficult to set schedule targets and deadlines
for project completion which are over-ambitious or neglect comparable experience projections
from identical projects. Essentially, this ensures that tasks are performed late as well as over
budgeted.

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1